HYDERABAD: Noida-based MLM firm eBiz.com, which allegedly cheated more than 17 lakh people from across the country and siphoned off more than Rs 5,000 crore from them by selling its products, has been busted by the Cyberabad Economic Offences Wing. The director of the group and his son were arrested, and deposits worth Rs 398 crore in several banks were frozen, the police said.
Pawan Malhan, who claims to be a Canadian citizen, and his son Hitikh Malhan, were arrested and produced before the court on Tuesday. In addition to the Rs 389-crore deposits frozen in banks, eBiz.com offices spread across a multi-storeyed building on 500 sq yards in a posh locality of Noida were sealed.
While Pawan Malhan holds a doctorate Physics and Mathematics from IIT Delhi, Hithik studied law and served as the company’s legal advisor.
Cyberabad Police Commissioner VC Sajjanar said the group’s operations — rampant in Hyderabad, Bengaluru, Chennai, and in the states of Uttar Pradesh, Maharashtra, Goa, and also in Jammu and Kashmir and Delhi — came to light after a city-based student was cheated by them.
“We again appeal to the public not to fall prey to such money-circulation schemes, which are... targeting women, retired persons, students and unemployed youth. The products are just a camouflage, and the real motive is operating money circulation schemes, which are banned in India,” he said.
eBiz.com booked in multiple cases
So far, four cases have been registered against eBiz.com Pvt Ltd in Cyberabad limits, and there are at least 12 cases in other states, including AP. The Enforcement Directorate (ED) has also registered a case against the group and initiated a probe, based on the cases registered by the Cyberabad police.
Inquiries revealed that Pawan Malhan floated the group in 2001 in Noida and soon spread operations all over the country. While he holds 99 per cent of the group’s shares, 1 per cent are in the name of his daughter, and his wife, Anitha Malhan, who serves as a director of the firm.
Pawan started his career in MLM business through Canada-based group Skybiz. He llater was appointed as the director He then quit Skybiz and floated his own business in India. They started by selling holiday packages and other products, and now sell education packages, mostly targeting students in the last stages of graduation or engineering, or those who have just passed out from college.